Residence contracts

A residence contract is the main document that outlines the legal relationship between the prospective resident and the retirement village operator. It operates in addition to the provisions of the Retirement Villages Act 2016 (SA) and Retirement Villages Regulations 2017 (SA), but cannot include clauses contrary to the Act or regulations. It is therefore vital that any prospective resident seek legal advice where appropriate before signing a residence contract to ensure they understand their rights and obligations.

Section 20 of the Retirement Villages Act 2016 (SA) requires a residence contract to include the name and contact details of the operator of the retirement village, details about the particular residence the person will reside in, and the resident’s rights and obligations under the contract, including:

the right to cool off (to rescind the contract and not proceed with becoming a resident in the retirement village)
- A prospective resident is entitled to cool off within 10 business days after the day they signed the contract, unless they occupy before the end of that period and sign a written waiver of their right to cool off [s 24]. If a person wishes to cool off, they must do so in writing to the operator.
the right to occupy the residence (including clarity as to whether the right to occupy is granted by a lease or licence, and, if so, confirmation that the resident is not purchasing the residence)
recurrent charges the resident must pay
whether the resident may make alterations to the residence and, if so, any obligation they may have to reinstate the residence at the end of their occupation
the right to terminate the right of occupation and receive an exit entitlement
information about the exit fees payable upon the exercise of a right to terminate the right of occupation
any fees or charges payable for remarketing the residence at the end of the resident's occupation.

The residence contract must also include information about:

additional services and facilities available to residents and their cost
the operator's dispute resolution policy
who will be responsible for repairing or replacing fixtures, fittings and furnishings in the residence and how the cost is to be covered, and
anything else prescribed by the Retirement Villages Regulations 2017 (SA).

From 2 February 2026, every retirement village operator is legally required to ensure that a new residence contract includes the above information. A fine may be imposed if an operator fails to meet this requirement [s 20].

Warranty as to accuracy of information

Every residence contract will be taken to include a warranty that the information and documents provided before signing a residence contract are correct (subject to any written changes made by the operator with the consent of the resident on or before signing the contract), and the warranty will prevail over any inconsistent contractual term unless the resident elects to rely on the contractual term [s 20(2)].

Holding deposits

From 2 February 2026, an operator may not require a holding deposit of more than $5,000 from a prospective resident [s 25A(1)]. Once a deposit is accepted, an operator may not increase a resident fee or charge under the residence contract or enter into a residence contract for the same residence with another person [s 25A(2)]. A resident who decides not to enter into the residence contract is entitled to a refund of the deposit within 10 business days [s 25A(5)].

Residence contracts : Last Revised: Wed Feb 11th 2026
The content of the Law Handbook is made available as a public service for information purposes only and should not be relied upon as a substitute for legal advice. See Disclaimer for details. For free and confidential legal advice in South Australia call 1300 366 424.

Legal Help for all South Australians

Refine results

Search by

Residence contracts

Connect with us